SOURCE CODE DESCRIPTIONS IRP5 code 4472 – Validation Rules

The Validation Rules for IRP5 code 4472 in the electronic file are:
• Conditional. All deductions and contributions that have a value must be reported, and those that do not have a value must not be reported
• A maximum of 12 deduction codes must be used. If there are more than 12 codes to be output, they must be combined in accordance with the rules defined
• If the certificate type is ITREG this field must not be completed.
• Cents must be omitted (decimal amount is invalid)
• No negative amounts are allowed
• Codes 4472 and 4473 are invalid from 2010 to 2016 year of assessments
• If code 4585 is greater than zero and code 4472 is equal to zero, then codes 3817/3867 and 4001 must be zero
• If code 4472 is completed, then code 3817and/or 3867 and code 4001 must be completed

All income and deduction components (e.g. salary, commission, allowances, benefits, medical contributions, employer information, etc.) must be reported against the applicable code as prescribed in the GUIDE FOR CODES APPLICABLE TO EMPLOYEES’ TAX CERTIFICATES PAYE-AE-06-G4.

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax

SOURCE CODE DESCRIPTIONS IRP5 code 4473 – Validation Rules

The Validation Rules for IRP5 code 4473 in the electronic file are:
• Conditional. All deductions and contributions that have a value must be reported, and those that do not have a value must not be reported
• A maximum of 12 deduction codes must be used. If there are more than 12 codes to be output, they must be combined in accordance with the rules defined
• If the certificate type is ITREG this field must not be completed.
• Cents must be omitted (decimal amount is invalid)
• No negative amounts are allowed
• Codes 4472 and 4473 are invalid from 2010 to 2016 year of assessments
• If code 4586 is greater than zero and code 4473 is equal to zero, then codes 3825/3875 and 4003 must be zero
• If code 4473 is completed, then code 3825 and/or 3875 and code 4003 must be completed

All income and deduction components (e.g. salary, commission, allowances, benefits, medical contributions, employer information, etc.) must be reported against the applicable code as prescribed in the GUIDE FOR CODES APPLICABLE TO EMPLOYEES’ TAX CERTIFICATES PAYE-AE-06-G4.

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax

SOURCE CODE DESCRIPTIONS IRP5 code 4474 – Validation Rules

The Validation Rules for IRP5 code 4474 in the electronic file are:
• Conditional. All deductions and contributions that have a value must be reported, and those that do not have a value must not be reported
• A maximum of 12 deduction codes must be used. If there are more than 12 codes to be output, they must be combined in accordance with the rules defined
• If the certificate type is ITREG this field must not be completed.
• Cents must be omitted (decimal amount is invalid)
• No negative amounts are allowed
• Code 4474 is only valid from the 2006 year of assessment
• Code 4474 is mandatory if an amount is completed for code 3810/3860 and nature of person (code 3020) is A, B, C, M, N, or R
• Code 4474 is not allowed if code 4493 is completed

All income and deduction components (e.g. salary, commission, allowances, benefits, medical contributions, employer information, etc.) must be reported against the applicable code as prescribed in the GUIDE FOR CODES APPLICABLE TO EMPLOYEES’ TAX CERTIFICATES PAYE-AE-06-G4.

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax

SOURCE CODE DESCRIPTIONS IRP5 code 4475

Deduction codes

In the electronic file IRP5 code 4475 is used for: Employer’s retirement annuity fund contributions paid on behalf of employee. This code is valid from the 2008 to 2009 years of assessment and from 2017 year of assessment.

The prescribed Length of IRP5 code 4475 in the electronic file is: N15

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax

SOURCE CODE DESCRIPTIONS IRP5 code 4485

Deduction codes

In the electronic file IRP5 code 4485 is used for: Medical services costs deemed to be paid by the employee in respect of other relatives. This code is not applicable prior to 2007 and with effect from the 2010 years of assessment and must not be included in any other code. Not applicable from 2010.

The prescribed Length of IRP5 code 4485 in the electronic file is: N15

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax

SOURCE CODE DESCRIPTIONS IRP5 code 4486

Deduction codes

In the electronic file IRP5 code 4486 is used for: Capped amount determined by the employer in terms of Section 18(2)(c)(i). This code is not applicable prior to 2007 and with effect from the 2010 years of assessment and must not be included in any other code. Not applicable from 2010.

The prescribed Length of IRP5 code 4486 in the electronic file is: N15

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax

SOURCE CODE DESCRIPTIONS IRP5 code 4487

Deduction codes

In the electronic file IRP5 code 4487 is used for: No value benefits in respect of medical services provided or incurred by the employer. This code is not applicable prior to 2007 and with effect from the 2010 years of assessment and must not be included in any other code. Not applicable from 2010.

The prescribed Length of IRP5 code 4487 in the electronic file is: N15

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax

SOURCE CODE DESCRIPTIONS IRP5 code 4493

Deduction codes

In the electronic file IRP5 code 4493 is used for: Employer’s medical scheme fees (contributions) paid for the benefit of a retired/former employee who qualifies for the “no value” provisions in the 7th Schedule [par 12A(5)]. This is the employer’s portion of the medical scheme contribution made on behalf of an employee who is —
· a pensioner (a person who by reason of superannuation, ill-health or other infirmity retired from the employ of such employer)
· the dependants of a pensioner after the death of the pensioner, (if such pensioner retired from the employ of such employer by reason of superannuation, ill-health, or other infirmity)
· the dependants of a deceased employee after such employee’s death, if such deceased employee was in the employ of the employer on the date of death; or
· an employee who is 65 years or older (prior to the 2013 year of assessment).
This code is only applicable from 2008 year of assessment.

The prescribed Length of IRP5 code 4493 in the electronic file is: N15

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax

SOURCE CODE DESCRIPTIONS IRP5 code 4582

Deduction codes

In the electronic file IRP5 code 4582 is used for: The portion of the following allowances and benefits which represents ‘remuneration’, but limited to
· The portion (80 or 20%) of the allowance and benefit which is subject to PAYE:
o Travel allowance (3701),
o Value of the Use of motor vehicle acquired by employer NOT via an Operating Lease (3802)
o Value of the Use of motor vehicle acquired by employer via an Operating Lease (3816)
· If Year of Assessment is 2017 or 2018, the portion of the Reimbursive travel allowance (only 3702 and NOT 3703) which is ‘remuneration’:
o 80 or 20% of 3702 is ‘remuneration’ where the reimbursement rate paid by the employer exceeds the prescribed rate
o where the reimbursement rate paid by the employer does NOT exceed the prescribed rate, 3702 is NOT ‘remuneration’ and should therefore not be included under code 4582 .
-although Employers are currently not required to withhold PAYE from this reimbursement.
· Code 3702 Reimbursive travel allowance must be excluded from 4582 as from 2019 Year of Assessment
The value of this code represents the total of the amounts reflected under each of the above codes which are ‘remuneration’ for the purposes of the allowable deduction i.r.o. pension, provident and retirement fund contributions [section 11 F of the Income Tax Act]. Applicable from 2017 YoA. Note amendments effective from 2019 YoA – exclude 3702

The prescribed Length of IRP5 code 4582 in the electronic file is: N15

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax

SOURCE CODE DESCRIPTIONS IRP5 code 4583

Deduction codes

In the electronic file IRP5 code 4583 is used for: The portion of the following allowances and benefits which represents ‘remuneration’, but limited to:
· The portion (80 or 20%) of the allowance and benefit which is subject to PAYE:
o Travel allowance (3751),
o Value of the Use of motor vehicle acquired by employer NOT via an Operating Lease (3852)
o Value of the Use of motor vehicle acquired by employer via an Operating Lease (3866)
· If Year of Assessment is 2017 or 2018, the portion of the Reimbursive travel allowance (only 3752 and NOT 3753) which is ‘remuneration’
o 80 or 20% of 3752 is ‘remuneration’ where the reimbursement rate paid by the employer exceeds the prescribed rate
o where the reimbursement rate paid by the employer does NOT exceed the prescribed rate, 3752 is NOT ‘remuneration’ and should therefore not be included under code 4583
although employers are not required to withhold PAYE from this reimbursement, that portion which represents ‘remuneration’ (80 or 20%) must be included in code 4583.
Code 3752 Reimbursive travel allowance must be excluded from 4583 as from 2019 Year of Assessment. The value of this code represents the total of the amounts reflected under each of the above codes which are ‘remuneration’ for the purposes of the allowable deduction i.r.o. pension, provident and retirement fund contributions [section 11F of the Income Tax Act]. Applicable from 2017 YoA. Amendments effective from 2019 – exclude 3752.

The prescribed Length of IRP5 code 4583 in the electronic file is: N15

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax